Optimistic of the country's long-term growth prospects, India-focussed offshore funds and exchange-traded funds (ETFs) have pumped in nearly USD 6 billion in the first nine months of the year.
In contrast, these funds had pulled out USD 1.73 billion in January-September of 2016, according to a Morningstar report.
The offshore India fund -- not domiciled in India -- receives flow from overseas investors and in turn, invests the money in Indian markets.
India-focussed offshore funds and ETFs are a subset of the overall foreign portfolio investor (FPI) flows.
According to the report, India-focused offshore funds invested USD 4.96 billion during January-September of the year while those of ETFs witnessed an infusion of USD 747 million, taking the total to USD 5.7 billion.
On a positive note, the money largely came into offshore funds which signify long-term money as against offshore ETF, where the money is largely short-term.
"I still feel that the long-term story is intact and solid and we will continue to get long-term money through the fund route," said Himanshu Srivastava, Senior Analyst Manager Research at Morningstar India.
During the July-September quarter, offshore funds and ETFs together witnessed an inflow of USD 935 million, which was lower than USD 2.77 billion seen in the preceding three months.
"One of the major reasons which is working against emerging markets is the increased tension on the Korean peninsula due to the stand-off between the US and North Korea," Srivastava said.
Besides, India is more impacted largely due to the delay in the pick-up of economic growth. This, coupled with expensive valuations, makes it a tricky situation, he added.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Mutual Fund SIP: Invest Rs 1000 per month to grow your corpus to over Rs 3.5 core at retirement, know calculations
Top 7 Stocks to Track: This defence PSU multibagger can give 45% return; food delivery app stock likely to rise 19%
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
01:19 PM IST